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Trade
Investing in the Forex market
Investuvannya the Forex market is gaining scale, and it's not just words. To understand that the industry is developing, enough to see the capital under the control of the traders in the PAMM ratings, different DC. It is no surprise invoices in which the total capital of more than a million dollars. A couple of years ago it seemed not to do not real, but it certainly drew attention and surprised looks of private traders.
Interest in investing
The investor already interested and those people who had not even thought about it. Therefore, now you can see the flow of capital not only from seasoned investors but do not understand in this matter. Actually, to be able to invest competently, you need to learn, probably not less time than learning to trade. Although not really, I'm still somewhat exaggerated. To invest money in Forex is easier than trading itself, but still, this activity requires preparation on the part of man.
Not uncommon to hear that people are disappointed in Bank deposits that do not cover the real inflation, mutual Funds, which have proved their instability during the global financial problems. In Forex, a successful trader will only be happy to some financial instability in the world. Has long been known that the financial crisis is far not all is bad news. In such periods one can observe on the contrary the inflow of capital into the work of some of the leaders on Forex.
So what you need to know before you begin the hunt for a Pro - trader? For a start it is worth mentioning that the most common forms of management of the investors is: trust management, PAMM – account. In this article, we consider those indicators which could help us in any of these cases.
As at the moment many companies provide their services at the market of investments in PAMM – accounts, and not all of the indicators discussed below, will be available in each DC. For example, in the company FX-TREND is no graphical display of the curves and balance of the account, several will reduce our opportunities in the analysis of their managers.
We list what we will consider: Manager's capital, total investment capital, the money Deposit unit Manager, download Deposit, profit factor, average profit and loss, the significance of the number of transactions and the work time account, curve points, curve trading account balance, the curve of a trading account. Let's start.
The capital of the managing trader and the investor
It is believed that you need to look at this figure, since the more money the Manager keeps at the trade, the more likely that he believes in the reliability of their actions. In principle, of course, you can pay attention to this indicator. Those accounts where a small amount of funds a trader in any case should not be discounted. Such accounts are better read more and take a closer look. If the Manager holds money on account, this does not mean that they do it.
There are situations when the trader has opened PAMM – account of investor's funds. Also, do not forget that the majority of speculators believe in yourself, and sometimes quite rightly. The Manager might be inspired by the victories that were won on the market previously. Self-confidence may be useless.
There is an opinion that it is better to choose the place where people carry their money. I remember a situation when a person comes into the store and doesn't want to listen to the advice of sellers, but instead asks that basically take people? Thus, it appears that some items are not dismantled, because it has certain competitive advantages, but because they see the hype.
Sorry, but besides the herd instinct, such an action no more can not call. Do not pay attention during mass. All of them, probably not much sense in investing in the Forex market and made your choice based on the choices of others.
Cash Deposit unit
It would seem that everything is simple and clear. If it says that the account is in USD, then there dollars, if it says that an account in UAH, it means that in rubles. If we are talking about PAMM – accounts, all true. But if You are a trader shows monitoring your account, it is better to be careful. The fact that even if the account will be opened in cents, the monitor will still tell us that the account in USD. Thus, the balance of 20,000 USD, in fact, may be of 20,000 cents or $ 200. Check it's not simple, but several ways there.
First, you need to see what DTS has an open account. If the DC in General there are cent accounts, the question itself disappears. Secondly, as a rule, is the server of the Deposit. If the server name is the word cent, then again, everything becomes clear, a cent account.
A very important indicator that can be used by an investor to determine the effectiveness of the work. Is calculated as the ratio over a period of the sum of all profitable deals to the sum of all losing with a positive sign. In other words, using this indicator we can understand outweigh profitable trades relatively unprofitable. The higher the rate, the greater the advantage to trade in favor of profits. Of course, it is not enough to trust your money in someone else's trade.
Not to write formulas explain, as they say, on the fingers. This will be enough. For example, a month of trading was done 100 transactions. 60 of trades were closed with profit, and 40 were unprofitable. To calculate the average profitable trade, you need to sum up 60 deals. That is, we add the results for all trades closed with profit.
Then just divide the result by the number of transactions, that is at 60. You can summarize the agreements earned points and possible remedies. The end result is thus the average profit in pips and profit in average assets. With the losses obtained by completely the same situation as considered in the example with profitable deals.
Now we should pay attention to these indicators. They are not important in themselves, and their relationship. If the average loss is much higher than the average income, it suggests that trade used, most likely of the foot, which greatly exceed the profit. As is appropriate, will decide each in its own way. If the average loss exceeds the average profit of more than 2 – 3 times, you should think really hard before investing their money in this trade.
The number of transactions and time on the account
Traders who have had classes on statistics, perhaps in school or University, know that the larger the number of trials conducted, the more reliable will be the overall result. The same we can observe on Forex. Very important indicator is the number of completed account transactions. The more there were, the greater the likelihood that trade can be considered sustainable.
Do not forget that the Manager had to beat the spread. Every transaction, regardless of its result, was paid by the trader. Even if the trade account is positive, but has been committed, for example, 50 transactions, it does not mean that such trade can already be considered robust enough to invest in it.
In addition to the number of transactions, the situation is complicated by the fact that the investor will have to take into account the value of the period of work of the Manager on the account. This is due to the fact that the market may be favorable conditions for individual trading strategy. For example, if the control in your trading relies on trends, then it will be good to get to earn in that period of time when the market just trends.
And now, the investor looks at the management job that suits him. But does not account for that account only 3 months, as the time in which there was a continuous trend. As soon as the market is formed flat, the trade will be a serious problem. Therefore, you should pay attention to the duration of the trade. It is desirable that it was at least 6 months, preferably a year. Only then can seriously consider the option of investing in the researched trade.
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| Category: Forex | Added by: (30.10.2017)
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| Views: 308
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